Glut in commercial office space are in old and unrefurbished buildings, Knight Frank Malaysia


KUALA LUMPUR: The glut in commercial office spaces have much to do with buildings which are old and have not been refurbished, said Knight Frank Malaysia managing director Sarkunan Subramanian.

Sarkunan told SunBiz at the sidelines of an event that buildings which fall under the Grade A category has positive absorption levels which infers that the glut lies in Grade B buildings.

“Grade A or (MSC status) buildings have positive absorption, from there you can infer that the glut is actually the Grade B buildings which are old and haven’t been refurbished, that is where the glut is,” he said.

“When it comes to new buildings, yes there is an oversupply but they are the ones who are absorbing all the tenants who are coming from the secondary buildings into theirs because rents are coming down,” he added.

Meanwhile on a separate note, the Malaysian Institute of Professional Property Managers (MIPPM) noted in a media briefing held during its 2017 Conference that unsold units in strata developments has led to cash flow problems for developers, which in turn affected their ability to pay service charges to property managers.

Read the original story on: TheSunDaily.My